Iranians have officially started the new year while still suffering from poverty. Iran’s statistics center announced on Sunday that the 12-month inflation rate had reached 36.4 percent, similar to the previous year, until the end of the Persian Year 1399 (2020-2021). The National Council of Resistance of Iran (NCRI), and the People’s Mujahedin of Iran (PMOI / MEK Iran), reported the inflation rate in 1399 was higher than the International Monetary Fund’s (IMF) latest forecast for Iran’s previous year’s inflation rate.
The IMF predicted that Iran’s inflation rate would be 30% in its latest study. According to a report from Iran’s Statistics Center, point-to-point inflation in February was around 48.7%.
The cost of people’s basic needs, such as poultry, has been affected by the point-to-point inflation rate. The Ministry of Industry, Mine, and Trade of the Iranian regime recently announced that the poultry price in February-March 2019 was 125,000 rials per kilogram and that it had risen to 220,000 rials per kilogram in 2021.
Nonetheless, state-run news agencies have reported that the market price of poultry is higher than 250,000 rials per kilogram.
The regime’s misguided economic policies are to blame for Iran’s rising inflation rate. To make up for its budget deficit, the regime has taken a number of bad decisions, including printing banknotes. Iran’s national currency loses value as a result of banknote printing, while the cost-of-living rises.
“Seemingly, the government has no choice but to print banknotes to compensate for its budget deficit. Five hundred and seventy billion tomans are injected into the Iranian economy by the Central Bank daily.
The Central Bank says that from February of last year to the end of February of this year, 107,640 billion tomans have been added to the monetary base. These numbers mean that another record in banknote printing has been set in the last year,” On March 13, the state-run Eghtesad-e Saramd daily published an article.
While the regime attempts to blame the United States for Iran’s economic crisis, the regime’s economists refute this claim, pointing to the regime’s economic mismanagement as the true cause of the crisis.
“The main problem with our economy is poor management, which is far worse than US actions regarding the nuclear deal or sanctions. If we consider the country a soccer team, this team will win with a good coach. Yet, when the coach does have competence, the team will lose,” On 20 March, one of the regime’s economists, Mohammad Khoshchehreh, informed the state-run Entekhab daily.
Iran’s society has been turned into a timebomb as a result of the regime’s economic mismanagement. Officials and state-run media are warning each other about another uprising ahead of the regime’s sham election.
On Monday, the state-run Entekhab daily quoted one of the regime’s economists, Hossain Raghfar. “In the last decades, we had an economic direction which practically made our country face [economic and social] crises and many other problems. We have to reform this now.”
Raghfar added, warning the regime’s officials, “[resolving Iran’s economic problems] is due to [to the officials’] understanding the economic priority. But I do not see a determination about this issue. If there is no fundamental change in the Iranian economy, we will certainly face worse conditions and problems in the near future.”